Major ports see 3.09% fall in cargo traffic

During Apr-Dec 2012, major ports witnessed a 3.09 per cent decline in cargo traffic because of fall in throughput of finished fertiliser and iron ore.

While the iron-ore traffic at major ports declined by half, handling of finished fertiliser slumped 33 per cent during Apr-Dec 2012.

Iron ore handling by ports declined mainly because of the ban on ore exports from Karnataka. The drop in handling of di-ammounium phosphate (DAP) and muriate of potash (MoP) pulled down the finished fertiliser traffic.

K Ravichandran, Senior Vice-President, ICRA said sales of both DAP and MoP slided in the last few months, and there is a huge inventory lying with various companies.

Further, the decline in cargo traffic is attributed to the global economic slowdown. Out of the eight cargo categories, only three — thermal coal; petroleum, oil and lubricants; and other cargo — grew.

The rest of the cargoes, including finished fertiliser, raw fertiliser, coking coal and container, saw a sharp decline in throughput.

Some industry players feel that the cargo traffic at major ports may not improve significantly in the next quarter because of sluggish growth in the global and Indian economy.

The Ennore port saw the highest growth mainly on account of the increase in handling of thermal coal. The port benefited from the Madras High Court ruling to move thermal coal to Ennore from Chennai.